National Storage Affiliates Trust · NYSE:NSA
National Storage Affiliates Trust — Q4 2024 Earnings Presentation
41 slides from National Storage Affiliates Trust's earnings presentation, Feb 27, 2025
Slide 1: Company Update
Company Update . SANSA rig STORAGE March 2025
Slide 2: Forward-Looking Statements And Non-GAAP Financial Measures
Forward-Looking Statements And Non-GAAP Financial Measures Forward-Looking Statements: We make forward-looking statements in this presentation that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of our business, f
Slide 3: Table Of Contents
Poised For A Recovery Table Of Contents Self Storage Industry Overview Company Overview Track Record Of Performance Multi-Faceted Growth Strategy Flexible Capital Structure Supports Future Growth Corporate Responsibility Overview Appendix (Including Definitions And Methodology) 3
Slide 4: Poised For A Recovery
Poised For A Recovery 4 1
Slide 5: Self Storage Supply Has Peaked And Is Projected To Decline Substantially
Self Storage Supply Has Peaked And Is Projected To Decline Substantially National Annual Completions Declining Well Below Historical Averages 80M 8% 70M 7% 60M 6% Percent of Stock Net Rentable Square Feet 50M 5% Long-Term Average: 4.1% 40M 4% 30M 3% 20M 2% 10M 1% 0 0% 2001 2002 2003 2004 2005 2006 2
Slide 6: The Housing Market Is Bottoming, Building Pent-Up Demand For A Recovery
The Housing Market Is Bottoming, Building Pent-Up Demand For A Recovery Turnover In The US Housing Market Is At Its Lowest Levels In ~40 Years Source: NAR, US Census Bureau, Morgan Stanley POISED FOR A RECOVERY | SELF STORAGE INDUSTRY OVERVIEW | COMPANY OVERVIEW | TRACK RECORD OF PERFORMANCE | MULTI
Slide 7: When The Housing Market Recovers, We Anticipate An Outsized Benefit
When The Housing Market Recovers, We Anticipate An Outsized Benefit NSA Is More Levered To A Housing Recovery Than Peers NSA’s Markets Have A Higher Level Of NSA’s Portfolio Is More Sensitive To The Homeowners Than Peers’ Markets(1) Level Of Existing Home Sales(2) 57.5% 98.0% 1.7 Quarterly Existing
Slide 8: NSA's Platform And Technology Initiatives Drive Improving Performance
NSA’s Platform And Technology Initiatives Drive Improving Performance Recently Completed / Launched Medium Term PRO Internalization Machine Learning Model Brand Consolidation NSAstorage.com AI & Automation In The Customer Experience Customer Experience Portal Support Center Of Excellence Storage Sel
Slide 9: NSAstorage.com: Consolidation Of Websites = Resource & Platform Efficiency
NSAstorage.com: Consolidation Of Websites = Resource & Platform Efficiency All NSA Stores Now On NSAstorage.com No Longer Compete Increase Conversion Rate Reduce Cost Of With More Store Choices Against Ourselves In Individual Clicks Google Ad Auctions On Website Migrated Over To One Website POISED F
Slide 10: NSAstorage.com: Consolidation Began May 2024
NSAstorage.com: Consolidation Began May 2024 Positive Implications: Improved Ranking In Local Search Results (Lower Numbers Are Better) January 2024 – Before Transition(1) February 2025 – 9 Months Into Transition(1) 7.1 8.6 10.0 ID MA 4.9 OR 3.8 6.4 ID MA 13.5 OR 6.2 10.7 6.7 RI 4.9 8.9 IA OH NJ 7.3
Slide 11: Long Term Testing: Informs Evolving Machine Learning Models
Long Term Testing: Informs Evolving Machine Learning Models Strategy Predict Split Up Similar MSAs Into Strategic Move-Outs Variations For Effective Testing From Churn + ECRI Set Marketing Rental Street Rates ECRI Forecasting Goal Spend Model: Tying Together Pricing, ECRI & Paid Measuring Success Ch
Slide 12: Self Storage Industry Overview
Self Storage Industry Overview 12 2
Slide 13: Highly Fragmented Industry: Consolidation Opportunity
Highly Fragmented Industry: Market Share by # of Facilities(1) (Approximately 52,000 self storage facilities in the U.S.) Consolidation Opportunity Self Storage Top Operator Market Share All Other NSA Public 22% TOP 5 2% Operators 37% 20%(3) 29% TOP 25 49% 32% TOP 50 55% Large All Other 34% Private
Slide 14: Self Storage: Higher Returns, Lower Volatility
Self Storage: Higher Returns, Lower Volatility Self Storage Has Outperformed Over The Past 31 Years NAREIT Equity REIT Sectors: 31 Yrs. Avg. Return vs. Volatility(1) Even in the worst five-year period, self storage delivered >4.5% average total shareholder return per year(1) 18.0% Lower Volatility 2
Slide 15: Company Overview
Company Overview 15 3
Slide 16: Q4 2024 Update
Q4 2024 Update Well-Diversified Across $8.9B 1,074 42 Total Enterprise Value(1) Properties States + Puerto Rico -4.3% -7.5% 85.2% Y-O-Y Same Store Revenue Y-O-Y Same Store NOI Same Store Avg. Occupancy Growth Growth -11.8% $39.6M 1.8% Y-O-Y Core FFO/Share Y-O-Y Growth In Transaction Activity Growth
Slide 17: Strategic Focus In Sunbelt Markets
Strategic Focus In Sunbelt Markets Sunbelt(1) 66%By Store Count Largest MSA (Riverside-San Bernardino-Ontario, CA) 7.6% Of Same Store Revenue In Q4 2024 % of NSA properties = 0% < 2% 2 - 5% 5 - 10% >10% (1) NSA defines the Sunbelt as the following states: AL, AR, AZ, CA, FL, GA, LA, MS, NC, NM, NV,
Slide 18: Secondary Market Outperformance
Secondary Market Outperformance NSA properties outside of the top 25 MSAs have outperformed NSA properties in the top 25 MSAs over the past five years and we have increased our exposure to these markets(1) Annual Average Same Store Growth % of Same Store Revenues % of Same Store NOI 2020 - 2024 6.2%
Slide 19: NSA's Top Markets – Supply Outlook Favorable
NSA’S Top 15 Markets – Supply Outlook Favorable 3.5 McAllen-Edinburg- Mission, TX 3.0 Brownsville-Harlingen, North Port- TX Bradenton- Est Supply Growth / Est Demand Growth Sarasota, FL 2.5 2.0 Las Vegas- Henderson-North Las Vegas, NV 1.5 Supply Outpacing Atlanta-Sandy Springs- Demand Roswell, GA Po
Slide 20: Why Invest In NSA?
Why Invest In NSA? The self storage sector has proven Attractive dividend yield - NSA’s dividend recession resilient and has been the best rate has grown 73% over the past five performing REIT sub-sector over the long years (Q1 2025 vs Q1 2020) and has a term(1) current yield of 5.9%(2) Simplificati
Slide 21: Track Record Of Performance
Track Record Of Performance 21 4
Slide 22: Trailing Five Years Of Performance (Q1 2020 – Q4 2024)
Trailing Five Years Of Performance (Q1 2020 – Q4 2024) $0.80 $0.80 1,200 90 $0.70 $0.70 80 1,000 70 $0.60 $0.60 800 60 $0.50 $0.50 50 $0.40 $0.40 600 40 $0.30 $0.30 400 30 $0.20 $0.20 20 200 $0.10 $0.10 10 $- $- 0 0 Q1-20 Q1-21 Q1-22 Q1-23 Q1-24 Q1-20 Q1-21 Q1-22 Q1-23 Q1-24 Core FFO/share Dividend/
Slide 23: Trailing Five Years Of Performance (Q1 2020 – Q4 2024)
Trailing Five Years Of Performance (Q1 2020 – Q4 2024) Average Quarterly Core FFO Total Shareholder Return Per Share Growth 11.6% 73.5% CUBE EXR 10.8% 69.6% NSA PSA 9.9% 65.3% 9.8% 42.1% 0% 5% 10% 15% 20% 0% 10% 20% 30% 40% 50% 60% 70% 80% POISED FOR A RECOVERY | SELF STORAGE INDUSTRY OVERVIEW | COM
Slide 24: Trailing Five Years Of Performance (Q1 2020 – Q4 2024)
Trailing Five Years Of Performance (Q1 2020 – Q4 2024) Average Quarterly Same Store Average Quarterly Same Store Revenue Growth NOI Growth(1) 6.9% 8.3% CUBE EXR 5.9% 7.2% NSA PSA 5.7% 6.7% 5.7% 6.5% 0% 2% 4% 6% 8% 0% 2% 4% 6% 8% 10% (1) Beginning in 2020, PSA’s same store NOI figures reflect “Same s
Slide 25: Multi-Faceted Growth Strategy
Multi-Faceted Growth Strategy 25 5
Slide 26: People, Process & Platform: Driving Internal Growth
People, Process & Platform: Driving Internal Growth SEAMLESS & ENHANCED CUSTOMER EXPERIENCE • Streamlining the unit selection process • Online lease • Remote site management OPERATIONAL EXCELLENCE • Continuous improvements to Web and Mobile experience • NSA-Built Call Center Solution DELIVERING NOI
Slide 27: Sector-Leading Margin Improvement With Room To Expand
Sector-Leading Margin Improvement With Room To Expand Same-Store NOI Margin Expansion Since Beginning Same-Store NOI Margin of 2017 through 2024(1) Full-Year 2024 CUBE 3.3% 78.5% EXR NSA 0.9% 74.1% PSA 0.3% 71.8% -0.7% 71.2% -2% -1% 0% 1% 2% 3% 4% 0% 20% 40% 60% 80% (1) Based on reported full-year s
Slide 28: Relationship-Driven Transactions Fuel Growth
Relationship-Driven Transactions Fuel Growth Annual Acquisition Volume Since IPO(1) 2020 – 2024 Wholly-Owned Acquisition Volume by Source 2024 $212.7 2023 $229.5 2022 $783.4 2021 $2,175.0 Off-Market / Captive Pipeline 2020 $565.2 55% 2019 $447.8 2018 $1,651.5 Marketed 45% 2017 $486.1 2016 $1,351.4 2
Slide 29: Flexible Capital Structure Supports Future Growth
Flexible Capital Structure Supports Future Growth 29 6
Slide 30: Flexible Capital Structure
Flexible Capital Structure CAPITAL FOR GROWTH KEY CREDIT METRICS(1) BBB+ RATED $950M MULTIPLE UNSECURED JOINT 6.5x 3.3x Outlook Negative Unsecured Revolving SOURCES & SECURED VENTURES Net Debt/ Interest Line of Credit Adjusted Coverage By Kroll Bond OF EQUITY DEBT EBITDA Ratio Rating Agency (1) See
Slide 31: Flexible Capital Structure
Flexible Capital Structure Total Enterprise Value - $8.9 Billion(1) Debt Equity 39% 61% (1) See appendix for definition. POISED FOR A RECOVERY | SELF STORAGE INDUSTRY OVERVIEW | COMPANY OVERVIEW | TRACK RECORD OF PERFORMANCE | MULTI-FACETED GROWTH STRATEGY | FLEXIBLE CAPITAL STRUCTURE | CORPORATE RE
Slide 32: Investment Grade Balance Sheet Provides Strength And Flexibility To Finance Growth
Investment Grade Balance Sheet Provides Strength And Total Principal Debt Flexibility To Finance Growth Outstanding Minimal Variable Rate Exposure Minimal Secured Debt $3.5B Variable Secured Weighted Average 6% 6% Maturity 5.0 YEARS Fixed Unsecured Swapped 94% 94% Effective Interest Rate 4.4% See de
Slide 33: Well-Laddered Debt Maturity Schedule
Well-Laddered Debt Maturity Schedule Debt Maturity Schedule ($ in millions) 1,000 800 600 400 200 - 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 RLOC Term Loans Private Placement Mortgage Based on actual consolidated debt as of December 31, 2024. Figures assume exercise of maturity ex
Slide 34: Corporate Responsibility Overview
Corporate Responsibility Overview 34 7
Slide 35: Sustainability
• Over 850 of our properties have LED lighting • Sustainability Vast majority of properties have motion- sensor- controlled lighting • All HVAC replacements completed with energy efficient models • Approximately 20 of our properties have solar arrays installed • In 2024, entered into agreement targe
Slide 36: Community & Team
Community & Team • National Storage Affiliates has partnered with Feeding America to provide over 1.5 million meals annually to individuals facing food insecurity. • Our SecurCare brand was recognized by Newsweek Media as one of America’s Best Customer Service Brands for 2024 • 52% of our employees
Slide 37: Corporate Governance Highlights
Corporate Governance Highlights GRESB & CDP – participated in the 2024 assessments Opted out of MUTA Vendor code of conduct No “poison pill” plan 9 of 12 trustees are independent Annual election of all trustees Separate chairperson and CEO roles Cybersecurity subcommittee POISED FOR A RECOVERY | SEL
Slide 38: Appendix
Appendix (including Definitions and Methodology) 38 8
Slide 39: Definitions And Methodology
Definitions And Methodology Total Enterprise Value: The sum of the Company’s debt principal outstanding plus the perpetual preferred series A and common equity valued at the closing price per share, as of December 31, 2024, of $21.34 and $37.91, respectively, and the Company’s perpetual preferred se
Slide 40: Contact Us
Contact Us Investor Relations George Hoglund, CFA Vice President – Investor Relations 720-630-2160 ghoglund@nsareit.net Corporate Headquarters National Storage Affiliates Trust 8400 East Prentice Avenue 9th Floor Greenwood Village, CO 80111 Website www.nsastorage.com SELF STORAGE INDUSTRY OVERVIEW |
Slide 41: NSA Storage
A NSA STORAGE
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